Lexus AA breakdown cover

[200h]

i have just had my renewal for my Lexus AA breakdown cover

& noticed it cost £135 if you make a 1 off card payment

but if you have a yearly auto renew DD then it costs £125

can anyone explain why there is a  price difference as there

is nothing stopping you from cancelling the auto renew DD.

[08ISF]

Probably because the greedy credit card company wants at least the £10 difference as commission.

 

 

[Phil xxkr]

12 hours ago, 200h said:

i have just had my renewal for my Lexus AA breakdown cover

& noticed it cost £135 if you make a 1 off card payment

but if you have a yearly auto renew DD then it costs £125

can anyone explain why there is a  price difference as there

is nothing stopping you from cancelling the auto renew DD.

Yes Mark, it's called, least line of resistance. Unless you notify your bank right away chances are in 12 months time you won't bother to look around and let it roll over. So it's worth a tenner not having to "sell it" to you allover again 🤑

[johnatg]

Indeed so. BTW - credit card companies charge between 2 and 4% of the transaction cost, but banks take a cut of DDs too.

If you'd like to save some more, check out AutoAid - £59.99 per year (for all your cars and partner (driving!). I've had to call them once (when my MX-5 coil pack failed) - the guy turned up pretty promptly and would have transported us home, but I managed to get the car going when the coils had cooled down. He followed us all the way home (~15 miles) just in case.

Or I've heard of an outfit called 'Rescue Mates' - works like Uber. But I know nothing more about them.

[paulrnx]

In these days of smart phones just set yourself a calendar entry for 10 months time to cancel said DD. Or however many months you decide. I thought £10 was a saving worth making for the sake of an annual DD. DDs can be managed via banking apps anyway.